Glottis Limited

🔴 Bear CaseWhat could go wrong?

1. Sales are being booked faster than collected
   Receivables are up 383% against revenue up 51%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
2. The price already assumes success
   The stock trades 29% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
3. Returns on shareholder capital are falling
   ROE has dropped from 194.8% to 13.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
4. Size brings its own risk
   Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
5. Several serious flags at once
   2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.